The answers to these questions are provided for your reference. You can use them according to your needs. We have listed the common questions investors typically ask startups.
General Questions
How and when did you get started?
Answer: We started in early 20XX when we identified a gap in the market for accessible, high-quality education resources for underserved communities. Our passion for education and technology drove us to develop a platform that bridges this gap.
Where did you and your co-founders meet?
Answer: My co-founders and I met at a tech conference in 20XX. We bonded over our shared vision of leveraging technology to improve education access.
How is the company structured?
Answer: Our company is structured with a CEO, CTO, and COO, supported by a team of developers, educators, and marketing professionals.
Are there any advisors or a board?
Answer: Yes, we have a board of advisors comprising seasoned professionals in education technology and business strategy.
Where is the company registered?
Answer: Our company is registered in City, Country Name, known for its favorable business laws.
Can you tell me something about the cap table?
Answer: Our cap table includes the founding team, key early employees, and initial angel investors. We are currently preparing for our Series A round.
Can you give me the contact to 2-3 partners you have worked with?
Answer: Absolutely, I can connect you with representatives from XYZ School District and ABC Educational NGO, who are among our key partners.
Why is now the right time to start the company?
Answer: The shift towards online education, accelerated by the pandemic, has created a significant demand for innovative learning solutions, making this the perfect time for our launch.
Business Model Questions
How are you making money?
Answer: We operate on a freemium model, offering basic access for free and premium features through a subscription plan. We also have partnerships with educational institutions for bulk licensing.
What is your marketing strategy?
Answer: Our marketing strategy focuses on digital marketing, partnerships with schools, and community outreach programs to raise awareness and drive user acquisition.
Who is your dream customer?
Answer: Our dream customer is a K-12 student from an underserved community who needs quality educational resources to achieve their academic goals.
What pivots have you already made?
Answer: We initially targeted urban schools but pivoted to focus on rural and underserved communities after identifying a more significant need there.
What makes you special?
Answer: Our platform’s personalized learning experience powered by AI sets us apart, as it adapts content to each student’s learning pace and style.
Are there any other revenue streams you are thinking of?
Answer: Yes, we are exploring advertising partnerships and corporate sponsorships to diversify our revenue streams.
Market Questions
How big is the opportunity?
Answer: The global e-learning market is projected to reach $XYZ billion by 2025, with significant growth in underserved regions where access to quality education is limited.
What trends do you see in the market?
Answer: Increasing adoption of online learning, growing use of AI in education, and rising demand for personalized learning experiences are key trends.
What is the actual addressable market?
Answer: Our addressable market includes approximately 500 million K-12 students in underserved communities worldwide.
What percentage do you plan to get over what period of time?
Answer: We aim to capture 5% of our addressable market within the next five years.
How did you arrive at the sales of your industry and its growth rate?
Answer: We analyzed industry reports from reputable market research firms and data from educational institutions to determine sales and growth rates.
Why does your company have a high growth potential?
Answer: Our unique value proposition, growing demand for online education, and focus on underserved markets position us for rapid growth.
Where is the data from?
Answer: Our data comes from market research reports, industry publications, and our internal analytics.
Team Questions
Who are the founders and key members of your team?
Answer: Our founding team includes experts in education, technology, and business, such as our CEO Jane Doe, who has 15 years of experience in education technology.
What relevant domain experience does the team have?
Answer: Our team has extensive experience in education, software development, and business management, with members who have previously worked at leading ed-tech companies.
What key additions to the team are needed in the short term?
Answer: We are looking to add experts in AI and data analytics to enhance our platform’s capabilities and a marketing specialist to drive our growth.
Why is the team uniquely capable to execute the plan?
Answer: Our team’s diverse skills and deep understanding of the education sector make us uniquely positioned to execute our plan effectively.
What are your strengths?
Answer: Our strengths include our innovative technology, deep market understanding, and passionate team.
What are your weaknesses?
Answer: Our main weakness is limited brand recognition, which we are addressing through strategic marketing efforts.
What are your motivations?
Answer: Our primary motivation is to make quality education accessible to all students, regardless of their location or socioeconomic status.
How big is the team?
Answer: Our team currently consists of 20 full-time members and 10 part-time contributors.
Tell me about your most challenging professional experience?
Answer: One of our most challenging experiences was navigating the technical and logistical hurdles during our platform’s initial launch phase.
When was a time where you succeeded against all odds?
Answer: We succeeded in securing a partnership with a major school district despite strong competition and limited resources.
What do you think about selling the company?
Answer: While our focus is on growth, we are open to acquisition opportunities that align with our mission and values.
How did you come up with the idea?
Answer: The idea emerged from our experiences working in education and witnessing the stark disparities in resource access between different communities.
Product & Services Questions
Why do users care about your product or service?
Answer: Users care because our platform provides personalized, high-quality education resources that help them achieve their academic goals.
What are the major product milestones?
Answer: Major milestones include launching our platform, reaching 50,000 users, and partnering with 20 schools.
What are the key differentiated features of your product or service?
Answer: Our key features include AI-powered personalized learning, real-time progress tracking, and culturally relevant content.
What have you learned from earlier versions of the product?
Answer: We learned the importance of user feedback in refining our features and ensuring our platform meets the needs of our target audience.
What key features are missing?
Answer: We are currently working on adding offline access and multilingual support to better serve our diverse user base.
If you had to – which features would you delete?
Answer: If necessary, we would consider removing less-used features such as advanced analytics for parents to streamline our offering.
Competition Questions
Who are your competitors?
Answer: Our main competitors are Khan Academy and Coursera.
What gives you a competitive advantage?
Answer: Our competitive advantage lies in our personalized learning experience and focus on underserved communities.
Are there any entry barriers?
Answer: Entry barriers include the need for advanced technology, partnerships with educational institutions, and a strong understanding of the education sector.
What advantages does your competition have?
Answer: Competitors have established brand recognition and a broader user base.
How are you compared to your competition in respect to price, reviews, and performance?
Answer: We offer competitive pricing, positive reviews for our personalized approach, and strong performance in user engagement.
Which competitor is doing the best job and why?
Answer: Khan Academy is leading due to its extensive content library and strong brand recognition.
Traction Questions
How much feedback have you received?
Answer: We have received extensive feedback from users, educators, and partners, which has been instrumental in refining our platform.
Is there any press coverage?
Answer: Yes, we have been featured in several educational and tech publications, highlighting our innovative approach.
What is the best/worst review you got?
Answer: Our best review praised our personalized learning approach, while the worst review highlighted initial technical glitches, which we have since resolved.
How big is the churn?
Answer: Our churn rate is relatively low at 10%, indicating strong user retention.
Give me some numbers on your users?
Answer: We have 50,000 active users, with a 30% monthly growth rate.
How many sale users do you have?
Answer: We have 15,000 premium subscribers.
How many users do you have?
Answer: We have a total of 50,000 users.
What is your growth rate?
Answer: Our user base is growing at a rate of 30% per month.
Is there any recurring revenue?
Answer: Yes, we generate recurring revenue from our subscription model.
What slowed your growth?
Answer: Initial technical challenges and limited marketing resources slowed our growth.
Are there any bottlenecks?
Answer: Our main bottleneck is scaling our technical infrastructure to handle increased user demand.
Financials Questions
What are your main assumptions?
Answer: Our main assumptions include continued growth in online education demand and steady user acquisition rates.
How much are your customer acquisition costs?
Answer: Our customer acquisition cost is $10 per user.
How much is your customer lifetime value?
Answer: Our customer lifetime value is $200.
What are the 3-5 key metrics you are focusing on?
Answer: Key metrics include user acquisition rate, user retention rate, average session duration, churn rate, and revenue growth.
What is your monthly burn rate?
Answer: Our monthly burn rate is $50,000.
How much debt & equity has been raised?
Answer: We have raised $2 million in equity and $500,000 in debt.
How much is spent on your salaries?
Answer: We allocate $30,000 per month to salaries.
The-Ask / Investment Questions
How much money do you need?
Answer: We are seeking $5 million in our Series A round.
What are you going to do with the money?
Answer: The funds will be used to scale our platform, enhance marketing efforts, and expand our team.
What would you do with even more money?
Answer: With additional funds, we would further invest in R&D to innovate our platform and explore international market expansion.
Is a certain amount already committed?
Answer: Yes, we have commitments for $2 million from existing investors.
Which milestones are you accomplishing with the money?
Answer: Key milestones include reaching 200,000 users, partnering with 50 schools, and launching new product features.
How long is the runway?
Answer: Our current runway is 18 months.
What if you don’t get the full round?
Answer: We will prioritize critical projects and focus on achieving key milestones to attract further investment.
What are the biggest risks?
Answer: The biggest risks include market competition and potential changes in education regulations.
When are you planning to raise the next round?
Answer: We plan to raise our next round in 12-18 months.
What’s your pre-money valuation?
Answer: Our pre-money valuation is $20 million.
How do determine your current valuation?
Answer: Our valuation is based on revenue projections, market opportunity, and comparable company valuations.
Will previous investors participate in the round?
Answer: Yes, several previous investors have expressed interest in participating.
What would your dream investor bring to the table?
Answer: Our dream investor would bring industry expertise, strategic partnerships, and a strong network in the education sector.
Do you have an ESOP in place?
Answer: Yes, we have an Employee Stock Ownership Plan to attract and retain top talent.
Which companies could be interested in acquiring you and why?
Answer: Companies like ABC and XYZ Learning could be interested due to our innovative technology and focus on underserved markets.
